Once deemed a basic human needs success story, Sri Lanka is now in its worst economic crisis since independence in 1948. Blaming Sri Lanka’s debt crisis on Chinese loans is not only factually wrong but also prevents understanding the origins and nature of its current crisis. As at April 2021, about 60% of Sri Lanka’s debt was for durations of less than 10 years. Deep-rooted problemsFollowing its 2001 recession, Sri Lanka recovered, before growth declined again after 2012 and the pandemic contraction in 2020. Sri Lanka’s debt crisis is clearly due to the policy choices of successive governments since the 1990s.

Source: The Edge Markets April 27, 2022 11:39 UTC